Bus services exempted under service tax

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Rehbar Siamwala (Querist)

21 December 2012 Our company having status as company as per Act, is providing transportation facility to employees from city to office premises and is having contract with private travel house not being a company.
He is not charging any service tax in his bill.
Are we liable to pay service tax under rent a cab services?
or
Are we covered under the exclusion of notification 25/2012 and section 66 of Finance act?

The question arose after I have received chart of service tax from my friend which specifically excludes the same but need proper justifation/documentation (being circular/notification/reference of Act) to confirm the same. Can any one help in providing the same.

or

if same is chargeable to service tax any documentation (being circular/notification/reference of Act) which could confirm its chargeability.

Thanks in advance

Kaushik Vinod

Kaushik Vinod (Expert)

23 December 2012 Hi Rehbar,
The item 23 of notification says as follows:-
Transport of passengers, with or without accompanied belongings, by -
A contract carriage for the transportation of passengers, excluding tourism, conducted tour, charter or hire;
If the Bus owner is having Contract Carriage Permit and the Vehicle is given on hire under a contract then Service tax is not attracted.
See also Section 66D(o) and item no.22 of notification no. 25/2012.

Thanks

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